Conversation with JD Roth of “Get Rich Slowly”–part II

I recently had the opportunity to talk at length with JD Roth, author of the blog Get Rich Slowly. Recently chosen by Money Magazine as the “Most Inspiring” money blog out there, Get Rich Slowly is an amazing collection of pretty much everything you need to know about building wealth slowly, sensibly and sustainably. This is the second half of our discussion.

Note: the text attributed to JD is paraphrased, not quoted (I just can’t type that fast during an interview), unless otherwise indicated. Any mistakes in accuracy are my own.

SP: Do you have any special advice on money management for women or girls?

JDR: I’ve heard a couple of stories lately about older women who, after their husband dies, have no idea about the family financial situation. The younger generations may be getting away from this; for older generations it was a spiritual or political issue–the man handles the money, that’s how it is–but people need to be more pragmatic. If there’s a death or divorce, and you had no role in managing money, you’re going to be lost.

People send me emails occasionally about these situations. Communication regarding financial matters is very important. And some women are intimidated, they don’t want to talk about finances with their partner. But they’re really hurting themselves. They need to take responsibility, to ask questions.

SP: How are we doing as a country, educating people about money?

JDR: There are lots of resources available, but the funding isn’t there to really promote financial literacy. No on goes on TV to advocate setting money aside in your 401K, there’s no incentive to do that. Instead everyone’s trying to sell you a car or a plasma TV. Whose responsibility is it to teach this? Is it parents? Schools? Really, everyone needs to pull together and teach young people financial literacy. There’s a resurgence of interest in the topic right now, which will hopefully last beyond the recession.

SP: The advice in your blog extends into every part of life: food, clothes, parenting, even character development like being more courageous and overcoming procrastination. Is there any part of life that doesn’t or shouldn’t have a financial dimension?

JDR: I’d say that really depends on the person. I can only write from my experience: I don’t have children, I’m not a woman, I’m not really politically active, so there are aspects of financial literacy that I don’t get to. So I host guest posts from others so that there will be posts about things I don’t have exposure to.

I think for many, spirituality doesn’t appear have a financial component. Many of us don’t think about how religion overlaps finances, but I have readers who are very passionate about it, so I host a couple of guest posts a year about it.

My goal is to have a diversity of perspective. If I wrote about myself all the time, I’d only write about comic books and cats. But I think it’s important to see that everyone has different values, their own set of experiences, their own emotional makeup, a different approach to money. If the blog were just me, it’d be boring. But comments, and the interactions in the comments, plus the guest posts allow people to identify with others like them: oh, there’s someone else in my shoes.

SP: I spend money on sports gear and books. I have to be very careful at REI, for example. I also tend to spend more when I’m in a good mood on a sunny Friday. What are your triggers to overspend and how do you overcome them?

JDR: To be honest, I tend to spend more when I’m feeling bad or when something bad happens. I seek solace in spending and in food. I too love books, and if something bad happens, I’ll find myself in a bookstore, hauling around a stack of books. But I’ve gotten good at catching myself, saying, “JD, you don’t need these books, you’re buying them to feel better about yourself.” I’m good at setting them down and walking away. Again, it’s self-awareness that works.

Another thing I do is when I really feel this urge to spend money, I know that what it is is a need to have stuff, to bring stuff into the house. So I try to fill that need for free or cheaply. I might check out a pile of books from the library–same satisfying, big pile, but with no cost. My wife and I, once or twice a year, will give ourselves a budget and head out to local thrift stores and see how much we can get, what treasures we can find for $20 or $50 each. It’s creative and fun, and it serves as an outlet for that urge to spend. And it’s fun to come home: my wife loves to show me everything she’s bought for just a little. I’m always looking for Modern Library books, classics from the 30s, 40s and 50s, so I always try to track down a few at the Goodwill or another thrift store.

SP: You are incredibly prolific. How do you come up with ideas to write about?

JDR: Some blog ideas are suggested by readers. One advantage of a wide reader base is people send me topics, article ideas. It’s wonderful. I’m really grateful for that. Also, I read a lot of books and magazines to get ideas and information. Sure, sometimes I freak out, thinking I have writer’s block. So I’ll spend a couple of hours reading until something I read triggers something to write.

Readers like best when I write about something that happens to me. I’ll be in a restaurant and start saying, give me a pen, give me a pen, and I’ll start jotting notes about our conversation. I ask my friends’ permission to use our conversation in a blog, and they just laugh. They’re used to it.

Too much advice is theoretical, it takes place in a vacuum. It’s best when it’s drawn from real-life experience. Readers love it when people talk about what they actually do, how they got into trouble and got out or didn’t. It’s much more interesting than dry advice from an investment advisor.

SP: All my posts on the PI end with a “change chore” to encourage people to make one step towards better money management in their lives. Would you be willing to create a “guest” change chore for my readers?

JDR: Absolutely. Change chore: don’t settle for a savings account that earns 0.20% interest. Online savings accounts offer rates of up to 2.00% with features that make it easy to save. Want to earn even more on your money? Look into Rewards Checking from your local community bank or credit union.

My thanks to JD for sharing his time and thoughts with Let’s Get Fiscal!